USA: Chevron Corp. Starts Perdido Oil and Gas Production

Chevron Corp. announced that the Perdido deepwater project, located in the U.S. Gulf of Mexico, has started crude oil and natural gas production.

According to a release, production from the Great White, Silvertip and Tobago fields utilizing the Perdido hub is expected to reach full capacity of 130,000 barrels of oil-equivalent per day after the drilling of additional wells.

“Achieving first oil at the Perdido development adds to an impressive list of major capital projects for Chevron in the deepwater,” said George Kirkland, vice chairman, Chevron Corp. “Perdido follows the recent start-up of two large deepwater projects, Tahiti and Blind Faith, and demonstrates the importance of the Gulf of Mexico for Chevron.”

“Perdido represents the industry’s first production from the Lower Tertiary, where Chevron has made multiple discoveries and is a leading leaseholder. This project’s success paves the way to develop further opportunities in this important new area,” said Gary Luquette, president, Chevron North America Exploration and Production Company.

 

The company noted that Perdido is the world’s deepest offshore oil and gas drilling and production spar and is 60 miles beyond any existing developments in the Gulf. Several new technologies were specifically developed for Perdido, including a means to separate crude oil and natural gas at the sea floor rather than on the platform. Chevron noted it began front-end engineering and design for the Jack and St. Malo fields last year and expects to sanction the project this year. The company said it also plans to further evaluate its Buckskin discovery in the Lower Tertiary through appraisal drilling activities in 2010.

Chevron has a 37.5 percent working interest in the Perdido regional host facilities and holds interests in the development’s three producing fields: Great White (33.3 percent), Silver Tip (60 percent) and Tobago (57.5 percent). The Great White field is expected to produce approximately 80 percent of Perdido’s total production. The production platform is located in Alaminos Canyon Block 857, approximately 250 miles south of Houston.

Chevron,April 27, 2010;Image: Chevron

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